Why Gulf Sovereign Funds Are Making Big Bets On SpaceX's Historic IPO

SpaceX's much-awaited stock market debut is drawing some of its biggest support from the Gulf. Sovereign wealth funds from Saudi Arabia, Kuwait and Qatar have reportedly submitted multi-billion-dollar orders for shares in what could become the largest initial public offering (IPO) in history.

The offering is expected to value Elon Musk's company at roughly $1.77 trillion to $1.8 trillion and raise close to $75 billion, even as demand from investors has already outpaced the shares available.

For Gulf investors, this is not a sudden bet. Many of them entered Musk's ecosystem years ago, long before SpaceX evolved into a company spanning rockets, satellite internet and artificial intelligence. A successful listing would finally turn years of paper wealth into realised gains while reinforcing the region's growing influence in the global technology race.

Who Is Putting Money Into SpaceX?

People familiar with the matter said Saudi Arabia's Public Investment Fund and Kuwait Investment Authority have each sought between $1 billion and $5 billion worth of shares. The Qatar Investment Authority, which manages around $580 billion in assets, is also expected to participate in a meaningful way.

The queue for shares stretches well beyond the Gulf. Large institutional investors from different parts of the world have reportedly placed massive orders, with some bids crossing the $10 billion mark. Since the issue has attracted more interest than available stock, not every investor is expected to receive the amount they requested.

Neither Saudi Arabia's Public Investment Fund (PIF) nor the Qatar Investment Authority commented on the reports. Kuwait's sovereign fund did not immediately respond to requests seeking clarification.

Why Are Gulf States So Interested?

The Gulf has spent the past few years building a presence in artificial intelligence. The Saudi PIF-backed Humain invested $3 billion in xAI earlier this year through a stake that it said would later convert into shares of SpaceX. The sovereign wealth fund also has indirect exposure to SpaceX through Kingdom Holding Company.

Abu Dhabi's MGX has backed Anthropic, OpenAI and xAI, spreading its bets across several of the industry's biggest names. For governments trying to diversify beyond oil, these investments represent a long-term strategic shift rather than one-off financial trades.

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A Defining Test For Gulf Tech Ambitions?

Regional tensions linked to the Iran conflict have weighed on traditional economic activity and exposed vulnerabilities in existing infrastructure. At the same time, Gulf nations continue pushing to establish themselves as serious players in emerging technologies.

If SpaceX lists near its targeted valuation, the IPO could become a landmark moment for the region. It would show that Gulf investors were not merely following a trend. They identified the potential of a transformative business early and stayed committed long enough to see that conviction tested on the public stage.

Sources:

The Economic Times

Fortune